XRP's Quiet Resurgence: Why Investors Are Accumulating in Secret

XRP, the native token of Ripple, has recently shown signs of renewed investor interest, driven by a combination of favorable market conditions and strategic institutional developments. Over the past month, XRP has recorded one of its strongest accumulation phases in two years, with investors acquiring nearly 1.7 million tokens, a trend that has sparked optimism among analysts regarding its potential for a sustained recovery. Despite the broader cryptocurrency market experiencing volatility, XRP has managed to outperform many of its counterparts, rising above $2.92 and nearing a critical resistance level at $2.85. A successful breakout could see the token targeting levels of $2.95 and beyond, according to technical analysis.

The surge in XRP’s price has coincided with a notable increase in Open Interest (OI), a key indicator of market activity in futures trading. As of late September 2025, XRP’s OI on major exchanges, particularly Binance, has shown a significant decline from its July peak of $1.76 billion, settling at $1.1 billion. This reduction, attributed to a period of deleveraging, may signal a phase of market repositioning. However, recent data indicates a reversal in this trend, with OI rising to $8 billion on Monday, up from $7.58 billion the previous day. Analysts view this as an indicator of growing speculative interest and potential market stability, as traders adjust their positions following a period of correction.

In addition to rising Open Interest, XRP’s futures funding rates have also increased, suggesting a shift in market sentiment. The funding rate, a periodic payment made by long or short futures contracts to balance supply and demand, rose from 0.047% to 0.0083% over the past week. This upward movement typically reflects a growing number of traders taking long positions, which could signal a bullish momentum. The combined increase in OI and funding rates has led to speculation that XRP may be on the verge of a significant breakout, with potential targets including $3.30 and even $3.66, representing a 23% rise from its current price.

The recent price action for XRP has also been influenced by broader market dynamics, particularly the anticipation of a Federal Reserve rate cut in mid-September. With a 99% probability of at least a 25-basis point reduction, the expectation of looser monetary policy has fueled a general rally across cryptocurrency markets. XRP, in particular, has benefited from this trend, surging over 4.15% in a single trading session and retaking the $3.00 psychological level. This move has been attributed in part to Ripple’s expanded partnership with Spanish banking giant BBVA, which now allows the institution to offer custody services for Bitcoin and Ethereum under the EU’s MiCA regulatory framework.

Technical indicators further support the bullish narrative for XRP. The token has successfully reclaimed the 50-day exponential moving average (EMA) and broken through the $2.96–$3.00 resistance zone, which had previously acted as a barrier to upward movement. The Relative Strength Index (RSI) currently sits in neutral-to-bullish territory, while the MACD histogram is showing signs of a bullish crossover, indicating accumulation activity. If XRP continues to hold above $3.00, it could potentially see gains of over 55% as it completes a three-month flag formation, with a target price of $4.70.

However, the market remains cautious, with some analysts warning that rising Open Interest without a corresponding price increase could expose traders to a potential long squeeze. Additionally, the Network Value to Transactions (NVT) ratio has spiked, suggesting that XRP’s valuation may have outpaced its transactional activity. While this could indicate overheating, it also highlights the market’s optimism about the token’s future utility and adoption.

Looking ahead, the next major resistance level for XRP is expected to be between $3.30 and $3.50, with the long-term potential dependent on the outcome of several structural factors, including the approval of XRP ETFs by the U.S. Securities and Exchange Commission (SEC). With six applications currently under review, a favorable decision could catalyze further institutional demand, particularly if combined with continued Fed rate cuts and increased banking sector adoption.